Are you stuck with the CUACM110 assignment Statement of Profit or Loss? If yes, we are one stop solution for any finance assignment or accounting assignment help at the best price. Casestudyhelp.com delivers top-quality assignment writing services for all students with 100% non-plagiarism work. Visit our website and get 24/7 assistance help. Order now!

Wood Mania pvt Ltd is a carpentry company based in Masasa light industry area. It is involved in the supply and fixing of furniture and fittings. The following trial balances were extracted from the books of Wood Mania Ltd for year ended 31 December 2022:

	Debit $000	Credit $000
6% Debentures		800.00
Accumulated Depreciation – Buildings – 1 January 2022		1,500.00
Accumulated Depreciation – Plant & Equipment – 1 January 2022		2,250.00
Retained Earnings at 1 January 2022		2,631.50
Balance on Corporation Tax at 1 January 2022		22.50
Bank		190.00
Buildings at Cost	7,500.00
Debenture Interest Paid	25.00
Distribution Expenses	232.50
Inventory at 1 January 2022	2,111.50
Issued Share Capital ($1/ shares)		3,600.00
Land	1,500.00
Marketing Costs	430.00
Other Income		200.00
Plant & Equipment at Cost	4,500.00
Allowance for Doubtful Debts		80.00
Purchases	12,000.00
Rent & Rates	120.00
Revaluation Surplus		300.00
Revenue		18,810.00
Salaries	980.00
Telephone Expenses	85.00
Trade Payables		1,000.00
Trade Receivables	1,900.00
	31,384	31,384

 

The following information, based on the Accountant’s investigations also come to your attention:

i. Inventory at the 31 December 2022 was $1,975,000.00 and part of this inventory, valued at $85,000.00 at cost was observed to be defective. The scrap value of this defective inventory was estimated at $55,000.00 and will cost Wood Mania Ltd Limited $9,500.00 to have it transported to the scrap dealer.

ii. Depreciation is to be charged as follows:
Buildings 4% Straight Line on Cost
Plant & Equipment 15% of Reducing Balance

Also Checkout: Accounting Assignment – Liability for Refundable Deposits

iii. The land and buildings were revalued in total at $6,500,000.00 of which land amounted to $1,000,000.00 at the 31 December 2022. This has not been recorded in the books.

iv. Corporation Tax for the year 2022 was correctly calculated at $300,000.00 and payment of $222,500.00 was made on the 31 December 2022. All these transactions were not included in the above trial balance.

v. Rent relates to a display unit rented and its rental period is yearly starting on the 1 June each year. The yearly amount of $60,000.00 is paid in full on this date.

vi. There are closing accruals for Marketing Costs, Salaries and Telephone Expenses amounting to $12,100.00, $18,050.00 and $1,400.00 respectively which have not yet been included in the above trial balance.

vii. A customer owing $30,000.00 went into liquidation. The liquidator has assured Wood Mania ltd that it will receive 10% of the amount. Wood Mania ltd has decided that the Allowance for Doubtful Debts should be set at 5%.

viii. A dividend of $50,000.00 was paid by cheque on 31 December 2022. This entry is not included in the above trial balance.

ix. Provide for any debenture interest due.

x. Relevant Expenses are to be allocated evenly between Distribution Costs and Administrative Expenses.

REQUIRED:

To prepare, in a form suitable for publication as required by relevant standards, (IAS1, IAS2, IAS10, IAS16, etc :

• Statement of Profit or loss and other extensive Income for the year of ended 31 December 2022, and;

(12 Marks)

• Statement of Financial Position for Wood Mania Ltd as at 31 December 2022

(13 Marks)

 

NB:     All workings must be shown and marks are awarded with reference to clearly labeled workings.                                                                                                                                                        (25 Marks)